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Currency swaps are a common financial tool, but because they might involve interest payments and exchange rate changes, there are some doubts regarding whether they adhere to Sharia law. Islamic finance is governed by Sharia law, which forbids engaging in speculative activities and charging or paying interest (riba). This has sparked a discussion among experts over whether currency swaps are permissible in Islamic finance and if they comply with Sharia law. Some academics are wary of using currency swaps in Islamic banking, but others contend that they can be set up in a way that complies with Sharia law. To establish Sharia-compliant alternatives to conventional currency swaps, new products such as Wa'ad-based currency swaps, Salam-based currency swaps, Bai al Sarf-based currency swaps, and Mudaraba-based currency swaps have been created. These goods enable Islamic financial institutions to conduct currency exchange business while upholding Sharia law's fundamental precepts. The creation of these alternative products demonstrates how Islamic banking may be modified to satisfy the demands of the contemporary financial industry while upholding Sharia law's tenets. It is anticipated that the use of Sharia-compliant currency swaps and other financial instruments will become more significant in Islamic finance as the global financial sector continues to develop.